Unveiling the Drivers of Global Logistics Efficiency: Insights from Cross-Country Analysis

Abstract

This study presents a novel approach to assess countries’ relative logistics performance differentials and identifies the underlying drivers using a data envelopment analysis (DEA) approach. The findings offer strategic insights and provide nations with valuable guidance in navigating the dynamic landscape of global logistics competitiveness. Recognizing the pivotal role of logistics in fostering economic activity and contributing to sustainability, we utilize the Logistics Performance Index (LPI) within the DEA model to gauge efficiencies at the country level and scrutinize influencing factors. Our findings indicate that international shipment practices in the last decade, as well as tracking and tracing recently, no longer contribute to the competitiveness of the countries, despite their potential for improvement. The overall change in logistics efficiency during the last decade remained relatively marginal, primarily driven by the frontier-shift effect. However, notable disparities among the country performance groups, particularly in adopting technological advancements, are manifested in the frontier-shift effect. Countries with lower logistics performance should prioritize addressing structural challenges related to customs, infrastructure, quality of logistics services, and timeliness. Medium-performance countries, while benefiting from a focus on customs, tracking and tracing, and timeliness in the early 2010s, are advised to align their efforts with high-performance countries by emphasizing managerial aspects in recent times.